Title
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department authorizes the Director to approve change order #4 to Contract No. (6001600) WS-708 “Repair of Water Main Systems: Various Pipe Sizes at Various Locations Throughout the City of Detroit” with Major Cement Company, to add $1,000,000 for a total cost not to exceed amount of $9,602,800 and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
Agenda of August 18, 2021
Item No. 21-0575
Contract No.: 6001600 (WS-708)
Proposed Change Order No. 4
Contractor: Major Cement Co. pa
Address: 15347 Dale Street, Detroit, MI 48219
Current Contract Amount: $8,602,800
Proposed Change Order 4 Amount: $1,000,000
Proposed Total Amended Contract Amount: $9,602,800
Current Contract Term: 10/18/18 - 12/31/21
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Water and Sewerage Department
RE: Proposed DWSD Contract No. 6001600 (project#) WS-708, "Repair of Water Main Systems: Various Pipe Sizes at Various Locations Throughout the City of Detroit"
Contractor: Major Cement Company Designer: DWSD
MOTION
Upon recommendation of Samuel Smalley, Chief Operations Officer, the Board of Water and Sewerage Department authorizes the Director to approve change order #4 to Contract No. (6001600) WS-708 “Repair of Water Main Systems: Various Pipe Sizes at Various Locations Throughout the City of Detroit” with Major Cement Company, to add $1,000,000 for a total cost not to exceed amount of $9,602,800 and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
JUSTIFICATION
The June 25th storm necessitated that DWSD allocate every possible operational employee to water in the basement investigations. These investigations are critical to finding and addressing damage that was done by the storm that washed a significant amount of debris into the sewers, generated over 250 sinkholes, and resulted in excess of 30,000 water in the basement complaints.
DWSD crews that would normally be repairing water main breaks, fixing water service leaks, and repairing hydrants had to be repurposed towards checking the sewer system. Since the storm washed a significant amount of debris into the sewer and likely caused other damages, addressing these defects is extremely urgent as the sewer may not be capable of adequately handling even smaller storms that could follow.
We had to solely rely upon this water main repair contractor to address all water related issues as we were heading into our peak summer water main break period. Additionally, Procurement has been completely consumed finding and bringing on board multiple sewer repair contractors, basement cleaning and sanitizing vendors, and getting all the related documentation in place for all the contractors supporting DWSD and our customers for this natural disaster.
The replacement contract WS 719 is at Procurement and either is ready for placement in MITN for bidding or already has been placed in MITN.
PROCUREMENT METHOD
This contract was competitively solicited through a Request For Bids and was awarded to the lowest responsive and responsible bidder, which was Major Cement Co. The initial contract was approved by the BOWC on 9/19/18 for a term of 1.5 years and $5,472,800.
Change Order 1 added 442 days to the contract term; extending it from 4/14/20 to 6/30/21 and was approved by the DWSD Director on 12/23/19.
Change Order 2 was approved by the BOWC on 8/12/20 and added $2,530,000, for a new amended total not-to-exceed amount of $8,002,800.
Change Order 3 was approved by the BOWC on 7/21/21 and added $600,000, for a new amended total not-to-exceed amount of $8,602,800. Also the change order added 184 days to the contract term; extending it from 4/14/20 to 12/31/2021
Proposed Change Order 4 is requesting additional funding of $1,000,000 with a proposed not-to-exceed amount of $9,602,800.
SUMMARY
A. Contract No.: WS-708
B. Contractor: Major Cement Company
C. Term Expiration Date: December 31, 2021
D. Funding Source I&E
E. Anticipated FY Breakdown:
FY22: $1,000,000
Distributed Work: Estimated Work:
78% Water Main Breaks $780,000
5% Service Leaks $50,000
5% Hydrants $50,000
3% Demolitions $30,000
5% Service Kills $50,000
4% Gate Valves $40,000
Total = $1,000,000
Projected Fiscal Year (FY) Contract Expenditures:
Balance Remaining on contract: $120,383.72
Change Order Requested: $1,000,000
WS-708 Expiration Date: December 31, 2021
Planned amount FY22: $1,000,000
I&E GL String: 5721-20244-487711-617900-900276-10792-0000-000000